Which of the Following Statements Is TRUE of a Bond

question 193

Multiple Choice

Which of the following statements is TRUE of a bond that is issued at a premium?

• A) The bond will be issued at an amount above face value.
• B) The stated interest rate is lower than the prevailing market interest rate.
• C) At maturity, the bond will repay an amount that is greater than the face value.
• D) The bond will be issued at par.

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Definitions:

Net Exports

The difference between a country’s total exports of goods and services and its total imports of them. Positive net exports indicate a trade surplus, while negative net exports indicate a trade deficit.

Chinese Currency

The official currency of China, known as the Renminbi (RMB) or commonly referred to as the Yuan (CNY).

Scrap Metal

Discarded metal suitable for reprocessing or recycling.

Pharmaceutical

Pertaining to the research, development, and manufacture of drugs and medications.